Long-Term Investment Strategy
Given that Red Barn's capital is provided by the General Partners and related family entities, we do not have the
same time constraints and investment horizon that institutional investors who are managing the funds of others
typically have. We seek value creation over the long term and, while we ultimately will seek long term gains from our
investments, the timing of exits will be dictated by company and industry factors, not investor requirements. We
are also prepared to hold businesses which, under our ownership, can continue to create shareholder value over
the very long term as we discover such unique opportunities.
Financially Stable, Established Businesses with Growth Potential and Unique Growth Equity Opportunities
In order to mitigate risk and maximize returns, Red Barn focuses on businesses that are financially stable and
either have organic growth potential or are located in a niche industry with a significant upside for market
growth. We look for fundamentally sound operating businesses with either a strong history of profitability,
or, in the case of growth equity investments, where near-term profitability and continued growth is clearly discernible.
Strong and Dedicated Management Team
Red Barn believes that a strong, dedicated, and motivated management team is vital to the success of any investment.
We seek to leverage the experience and skills of existing management with our own diversified expertise and, if
necessary, utilize existing relationships to recruit talented managers with applicable experience to immediately
add value.
Aligned Interests
It is important to us that management’s interests are aligned directly with those of Red Barn and potential co-investors.
In addition to sharing the initial investment opportunity with target management, we often promote key executives with
initial equity grants and provide equity incentive plans that allow management to participate in the value that they
help create.
Active Participation by Red Barn
Red Barn is an active participant in the growth of its portfolio companies. That said, we strive to provide value-added
participation and avoid micromanagement. We are not the managers of our portfolio companies and we don’t seek such a
role. However, we strongly encourage management teams to leverage our expertise and relationships in the best interest
of our collective investment.
